South African gold miners grapple with rising costs despite record prices

SOUTH African gold miners are being weighed down by elevated costs, with the Minerals Council of South Africa saying on Tuesday that the sector recorded the highest increase in input costs.

- TAWANDA KAROMBO

This comes as Gold Fields recently said all-in-costs for the 2025 March quarter grew by 6%.

Bullion prices have been surging to record highs in the past few weeks although South African producers of the precious metal have largely not raised production due to higher costs.

Andre Lourens, an economist with the Minerals Council said the gold sector has been experiencing higher input cost inflation.

“In March, the gold sector recorded the highest average increase in input cost inflation, although benefiting from strong market prices - with gold averaging $2 986 per ounce. This underscores the ongoing cost pressures linked to mining deep-level, lower-grade ore bodies,” said Lourens.

For Gold Fields, which operates the South Deep mine in South Africa, all-in-costs have been spiking. All-in-costs for South Deep increased by 6% to R1 032 462 per kilogram in the March 2025 quarter, up from R974 315 per kilogram in the December 2024 quarter.